Developed in 1991, the Program is a variety of local laws, rules, and regulations whose purpose and intent are to provide affordable housing for people who earn a living by working in the Telluride R-1 School District. The Towns of Telluride and Mountain Village have their own affordable housing programs and applicable deed restrictions.

Deed Restriction (“DR”) is the generic term used to identify limitations on the way that a piece of property can be used. Deed restrictions apply to the property, regardless of who owns it.  For properties in the unincorporated portion of the County, the terms and conditions of any deed restriction can be found in either the San Miguel County Land Use Code (“LUC DR”) or a Covenant.

1. San Miguel County Land Use Code (“LUC”) §§ 5-1304, 5-1305 and 5-1306
2. The Amended and Restated Deed Restriction and Covenant (“New Covenant”)
3. The Rio Vista Covenant and Guidelines (“RVII Covenant”)
4. The Rural Homes: For Sale, For Locals Deed Restriction and Covenant Pinion Park and Guidelines (“Pinion Park Covenant”) in Norwood.

The LUC is the set of local laws enacted by the BOCC after review and recommendation by the County Planning Commission and public hearings as required by State law. The LUC became effective upon adoption by the BOCC on November 30, 1990. LUC § 1-103

The LUC is substantially based upon the County Land Use Policies in Article 2. Article 3 contains procedures for all land use reviews. Article 4 contains the submission contents for land use applications and Article 5 contains land use standards. Article 6 contains definitions. LUC § 1-102

Chapter 5, Section 13 establishes standards for accessory dwelling and affordable housing. The LUC guidelines, rules, and regulations are intended to help preserve a sufficient supply of Affordable Housing to meet the needs of locally employed residents in the Telluride R-1 School District while allowing customary free-market (unrestricted) practices to influence the sale and rental of Affordable Housing as much as possible. The LUC Affordable Housing Program guidelines, rules, and regulations are found at LUC §§ 5-1304, 5-1305 and 5-1306.

The “Covenant” is a contract deed restriction between the Owner and the County. The terms of the covenant, as signed by the Owner and County, can’t and won’t change without both parties agreeing to any changes.  This is basic contract law.

Yes, the County may offer different terms or conditions to the next owner of the property.   The new Owner and County would “lock in” those updated terms and conditions upon signing by both parties.

Any proposed changes to the Covenant are discussed and adopted during duly noticed public meetings.  The BOCC, acting as the SMCHA, may change the Covenant and the Guidelines to meet changing economic, environmental, and social demands, among other concerns. These changes are proactive and will not change existing fully-executed Covenants.

The New Covenant is available to all owners of deed-restricted property in the County except for Rio Vista II and Pinion Park in Norwood.  Unlike the New Covenant, the RVII Covenant and the Pinion Park Covenant both have income, asset and resale price appreciation limits. 

The BOCC may amend the LUC during a noticed, public meeting. Unlike properties covered by a Covenant, restrictions for properties subject to the LUC DR, are subject to change during an ownership period. Additionally, the New Covenant has incorporated more flexibility with respect to exceptions and retired status.

When the San Miguel County Affordable Housing Program was developed, all of the properties subject to a DR were under the provisions of the LUC DR.  As the needs of the Program changed, the BOCC made updates to the LUC DR, and some Owners were concerned about the uncertainty that might bring to their ownership.  In response, the County worked with community stakeholders and developed the first version of the Covenant.  Some Owners chose to sign the Covenant and others decided to remain under the LUC DR.

There are a variety of reasons why the needs of the Program have changed over the last 20 years.  For instance, RVII and Pinion Park were developed with state and/or federal funds that limited the pool of owners by income and assets as well as requiring price-appreciation caps.  In addition, the pressure of mortgage rates and price increases, the Covid pandemic, and remote working capabilities have impacted the local real estate market., The LUC DR and Covenant have been adapted to help ensure the available deed-restricted properties are owned and occupied by the intended local workforce.

Yes. Proposed changes to the LUC or Covenant are discussed and adopted during duly noticed public meetings.  The LUC, Covenant, and any guidelines to SMRHA staff for the administration of the Program, may change to meet changing economic, environmental, and social demands, among other concerns. For properties under the LUC DR, the changes will affect current ownership.  For properties under a Covenant, the changes are proactive and will not change existing, fully executed Covenants.

Qualifications may include minimum employment requirements, earned income requirements, residency requirements, and property ownership limitations.

Seven business days from the time SMRHA receives a completed application. 

Yes, however, the Owner may not rent or lease the property or any portion of the property, for any amount of time, without written approval from SMRHA. Any advertisement to rent the property shall specify that all potential renters must receive approval as a Qualified Tenant before occupying the property. The owner shall provide SMRHA with a fully executed copy of the lease or other occupancy agreement no later than ten business days after it is fully executed. The owner may not lease the property for a term of less than thirty days.

Yes.  To rent a property subject to a deed restriction, you must be a Qualified Tenant.  Renters must requalify every year and Owner is required to submit a new lease each year. SMRHA emails courtesy renewal reminders before lease expiration. SMRHA requires that each Tenant must submit a renewal application two weeks before lease expiration.

The County’s DRs do not dictate whether or not the Owner or Tenant can have a dog. The Owner should check with any applicable homeowners’ association for their rules or restrictions. 

If you are self-employed, you will be required to show an accurate accounting of your working hours, location (including address) , and income for the previous 12 to 16 months. In addition, a profit and loss, business tax returns, payroll verification, and other documentation may be requested to confirm your qualification. Third-party verification is recommended and may be required. 

Yes, with restrictions. You may be away from your housing unit for a maximum of 4 months on a rolling 12-month cycle.  If you wish to be away for a longer period, you must request and receive an exception for a Leave of Absence.

Yes, but all SMC Building, Zoning, and Planning rules and regulations apply.  You may also but subject to homeowner association procedures and restrictions.

Yes, excluding RVII and Pinion Park, there are no price appreciation caps on deed-restricted properties in the County. 

Accordion

The Owner must submit written notice to SMRHA of their intent to sell the property. The notice must be submitted at least five days before offering the property for sale. The owner may sell the property for sale by owner or list and sell the property through a real estate broker licensed in the state of Colorado.

In order to allow potential purchasers who do not need an exception an opportunity to purchase, no exceptions may be requested until the housing unit has been listed for sale for 6 months. 

Changes to your Household are a normal life occurrence.  Please notify SMRHA immediately of any changes to your Household in the event the change may jeopardize qualification.  SMRHA will work with owners to stay on track for qualification in light of Household changes.

SMRHA may require a Household to re-qualify at any time by random audit or based upon information received that puts compliance in question. SMRHA performs a program-wide compliance verification every two years.  if not sooner.

SMRHA may request documentation reasonably related to qualification including but not limited to W-2’s, notarized employer verifications, third-party verifications, pay stubs, federal tax returns, time logs, invoices, business licenses, and expense receipts. It is the burden of the owner or renter to supply all requested documentation by the established deadline.

Please reach out to SMRHA before your pending retirement. Retired owners are still subject to compliance verification upon request.

Most deed restricted owners in San Miguel are subject to fines for failing to submit timely compliance paperwork, failure to qualify a tenant, and more. See the fine schedule HERE.

SMRHA may provide conditional approval to applicants based on the situation. For example, a new employee to the region might not have an employment history. Conditional approvals require applicants to submit supplemental documentation between 3-6 months following initial approval.